What changed

(6) Persons, entities and bodies, which are designated individually in Union restrictive measures and subject to those Union restrictive measures, may often be involved as instigators and accomplices. For instance, the practice by designated persons and entities of transferring funds, property or economic resources to a third party with a view to circumvent Union restrictive measures is increasingly widespread. Therefore, this conduct is covered by the circumvention offence approximated by this Directive.

(6) Persons, entities and bodies, which are designated individually in Union restrictive measures and subject to those Union restrictive measures, as well as dependants of those natural persons,measures may often be involved as instigators and accomplices. For instance, the practice by designated persons and entities of transferring funds, property or economic resources to a third party closely related, including dependants, with a view to circumvent Union restrictive measures is increasingly widespread and risksneeds to underminebe theaddressed objectivessince ofit undermines the effectiveness of Union restrictive measures. Therefore, this conduct is covered by the circumvention offence approximated by this Directive.

Or. en

Amendment 2

Amendment

(6 a)(6a) Violation of the Union restrictive measures is often linked to other criminal activities and most notably motivated by considerations of financial gain. While generating profits, the circumvention of restrictive measures enables the continued use of frozen assets in waysassets. whichIt undermineundermines the objectives and effectiveness of those restrictive measures.measures Criminaland lawhence measuresneeds adoptedto inbe theaddressed. Union,Proceeds andresulting thefrom freezingthe andviolation confiscationof thatUnion resultrestrictive therefrom,measures representor ainstruments wayused to supportpursue victimthe population.violation of restrictive measures should become the object of confiscation. Where the confiscated assets resultstem from the crimeviolation of sanctionthe violationUnion andrestrictive aremeasures relatedimposed toon CouncilRussia Regulationfollowing (EU)the Nowar 269/20141aof andaggression Councilagainst RegulationUkraine, (EU)the Nonet 833/20141b,revenues resulting from the useliquidation of such assets should serve the goal of the reconstruction of Ukrainebuilding and helprebuilding toof the local victim population,infrastructure in line withUkraine theincluding Directivethrough (EU)the [.../...]use of thefinancial Europeaninstruments, Parliamentas andwell ofas the Council [oncompensation assetfor recoverythe andvictim confiscation]1c.population.

__________________

1a Council Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ L 78, 17.3.2014, p. 6).

1b Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine (OJ L 229, 31.7.2014, p. 1).

1c COM(2022) 245.

Or. en

Amendment 3

Proposal for a directive

Recital 19

Text proposed by the Commission

Amendment

(19) To ensure the effective investigation and prosecution of violations of Union restrictive measures, Member States’ competent authorities should cooperate through and with Europol, Eurojust and the European Public Prosecutor’s Office (EPPO). These competent authorities should also share information among each other and with the Commission on practical issues.

(19) To ensure the effective investigation and prosecution of violations of Union restrictive measures, Member States’ competent authorities should cooperate through and with Europol, Eurojust and the European Public Prosecutor’s Office (EPPO) in accordance with their respective mandates. These competent authorities should also share information among each other and with the Commission on practical issues.

Amendment 4

Proposal for a directive

Recital 19 a (new)

1a Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1).

Or. en

Amendment 5

Amendment 4

Proposal for a directive

Amendment

(19b) Offences consisting in violation of the Union restrictive measures which involve designated persons, their dependants, entity or body, listed in the legal acts of the Union on restrictive measures, such as Council Regulation (EU) No 269/2014269/20141a and Council Regulation (EU) No 833/2014,833/20141b, need to be considered in the light of the crimes against the financial interests of the Union. As such they should be referred to the EPPO, as the Union body specialised in the investigation of the crimes against the financial interests of the Union, for investigating, prosecuting and bringing to judgment.

Or. en

___________________

Amendment 5

1a Council Regulation (EU) No 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine (OJ L 78, 17.3.2014, p. 6)

1b Council Regulation (EU) No 833/2014 of 31 July 2014 concerning restrictive measures in view of Russia's actions destabilising the situation in Ukraine (OJ L 229, 31.7.2014, p. 1.

Amendment 6

Proposal for a directive

(23) The objectives of this Directive, namely to ensure common definitions of offences related to the violation of Union restrictive measures and the availability of effective, dissuasive and proportionate criminal penalties for serious offences related to the violation of Union restrictive measures cannot be sufficiently achieved by Member States but can rather, by reason of the scale and effects of this Directive, be better achieved at Union level, taking into account the inherent cross-border nature of the violation of Union restrictive measures and their potential to undermine the achievement of the Union objectives to safeguard international peace and security as well as to uphold Union common values. Therefore the Union may adopt measures, in accordance with the principle of subsidiarity as set out in accordance with Article 5 TEU. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary to achieve that objective.

(23) The objectives of this Directive, namely to ensure common definitions of offences related to the violation of Union restrictive measures and the availability of effective, dissuasive and proportionate criminal penalties for serious offences related to the violation of Union restrictive measures cannot be sufficiently achieved by Member States but can rather, by reason of the scale and effects of this Directive, be better achieved at Union level, including through the active involvement of EPPO within the scope of its mandate, taking into account the inherent cross-border nature of the violation of Union restrictive measures and their potential to undermine the achievement of the Union objectives to safeguard international peace and security as well as to uphold Union common values and defend the Union financial interests. EPPO, as the Union body specialised in the investigation of the crimes against the financial interests of the Union, shallshould play a crucial role in the investigation of the crimecrimes of circumvention of the Union restrictive measures, andmeasures shouldwhen bringthey suchare investigationsdeemed to prosecutionundermine andthose judgement.financial interests. Therefore the Union may adopt measures, in accordance with the principle of subsidiarity as set out in accordance with Article 5 TEU. Among others, increased efforts for preventing the evasion of Union restrictive measures should be explored, including through the establishment of joint sanctions enforcement structures,explored with a view to supporting Member States in the implementation of Union restrictive measures. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary to achieve that objective.

Or. en

Amendment 7

Amendment 6

Proposal for a directive

(b) ‘designated person, entity or body’, means those natural or legal persons, entities or bodies subject to Union restrictive measures consisting in the freezing of funds and economic resources and the prohibition to make funds and economic resources available;

(b) ‘designated person, entity or body’, means those natural persons and their dependants or legal persons, entities or bodies subject to Union restrictive measures consisting in the freezing of funds and economic resources and the prohibition to make funds and economic resources available, as well asincluding Union travel restrictions;

Or. en

Amendment 8

Amendment 7

Proposal for a directive

(3) Member States shall take the necessary measures to ensure that the criminal offences referred to in Article 3(2), points (h)(iii), (iv) and (v), are punishable by a maximum penalty of at least one year of imprisonment when they involve funds or economic resources of a value of at least EUR 100 000. Member States shall ensure that the threshold of EUR 100 000 or more may also be met through a series of linked offences referred to in Article 3(2), points (h)(iii), (iv) and (v), when committed by the same offender.

(3) Member States shall take the necessary measures to ensure that the criminal offences referred to in Article 3(2), points (h)(iii), (iv) and (v), are punishable by a maximum penalty of at least one year of imprisonment when they involve funds or economic resources of a value of at least EUR 50 000. Member States shall ensure that the threshold of EUR 50 000 or more maycan also be met through a series of linked offences referred to in Article 3(2), points (h)(iii), (iv) and (v), when committed by the same offender.

Or. en

Amendment 9

Amendment 8

Proposal for a directive

(4) Member States shall take the necessary measures to ensure that the criminal offences referred to in Article 3(2), points (a) to (g), (h)(i) and (ii), and point (i), are punishable by a maximum penalty of at least five years of imprisonment when they involve funds or economic resources of a value of at least EUR 100 000. Member States shall ensure that the threshold of EUR 100 000 or more may also be met through a series of linked offences referred to in Article 3(2), points (a) to (g), (h)(i) and (ii), and point (i), by the same offender.

(4) Member States shall take the necessary measures to ensure that the criminal offences referred to in Article 3(2), points (a) to (g), (h)(i) and (ii), and point (i), are punishable by a maximum penalty of at least five years of imprisonment when they involve funds or economic resources of a value of at least EUR 50100 000. Member States shall ensure that the threshold of EUR 50100 000 or more maycan also be met through a series of linked offences referred to in Article 3(2), points (a) to (g), (h)(i) and (ii), and point (i), by the same offender.

Or. en

Amendment 10

Amendment 9

Proposal for a directive

(5) Member States shall take the necessary measures to ensure that natural persons who have committed the offences referred to in Articles 3 and 4 may be subject to additional penalties. Those additional penalties shall include fines.

(5) Member States shall take the necessary measures to ensure that natural persons who have committed the offences referred to in Articles 3 and 4 may be subject to additional penalties. Those additional penalties which shall include fines. Such fines shall be proportionate to the amount of funds or economic resources involved in the offence.offence with a maximum of at least EUR 10 000 000 when those offences involve funds or economic resources of a value of at least EUR 100 000.

Or. en

Amendment 11

Amendment 10

Proposal for a directive

(2) Member States shall take the necessary measures to ensure that for legal persons held liable pursuant to Article 7 the criminal offences referred to in Article 3(2), points (h) (iii) to (v), are punishable by fines, the maximum limit of which should be not less than 1 percent of the total worldwide turnover of the legal person in the business year preceding the fining decision.

(2) Member States shall take the necessary measures to ensure that for legal persons held liable pursuant to Article 7 the criminal offences referred to in Article 3(2), points (h) (iii) to (v), are punishable by fines, the maximum limit of which should be not less than 5 percent of the totalconsolidated worldwide turnover of the legal person in the business year preceding the fining decision.

Or. en

Amendment 12

Amendment 11

Proposal for a directive

(3) Member States shall take the necessary measures to ensure that for legal persons held liable pursuant to Article 7 the criminal offences referred to in Article 3(2), points (a) to (f), (h)(i) and (ii), and point (i), are punishable by fines, the maximum limit of which should be not less than 5 percent of the total worldwide turnover of the legal person in the business year preceding the fining decision.

(3) Member States shall take the necessary measures to ensure that for legal persons held liable pursuant to Article 7 the criminal offences referred to in Article 3(2), points (a) to (f), (h)(i) and (ii), and point (i), are punishable by fines, the maximum limit of which should be not less than 10 percent of the totalconsolidated worldwide turnover of the legal person in the business year preceding the fining decision.

Or. en

Amendment 12

Proposal for a directive

Article 10 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

Member States shall ensure that funds or economic resources subject to Union restrictive measures in respect of which the designated person, entity or body, listed in Council Regulation (EU) No 269/2014 and Council Regulation (EU) No 833/2014, commits or participates in an offence referred to in Article 3(2) shall be frozen and confiscated.

Or. en

Amendment 13

Proposal for a directive

Article 10 – paragraph 1 b-1 (new)

Text proposed by the Commission

Amendment

Member States shall take measures allowing confiscated funds or economic resources referred to in Article 10, paragraph 1a to be used for public interest or social purposes, with a particular focus on the victims wherever possible. Where the fines referred to in Article 5(5) and Article 7(2) and (3) are related to the offences referred to in Articles 3 and 4 and are linked to the military aggression of Russian Federation against Ukraine, they should serve the goal of rebuilding of the infrastructure and compensation to the victims in Ukraine.

Member States shall ensure that funds or economic resources subject to Union restrictive measures in respect of which the designated person, entity or body, listed in Council Regulation (EU) No 269/2014 and Council Regulation (EU) No 833/2014, commits or participates in an offence referred to in Article 3(2) shall be frozen and confiscated as per Articles 11 to 18 of Directive (EU) [.../.../] of the European Parliament and the of the Council [on asset recovery and confiscation]1a. In addition, Member States shall ensure that regarding the party closely related to suspected, accused or convicted person as defined in Directive (EU) [.../...][on asset recovery and confiscation], Article 13 of the same Directive is fully implemented and without undue delay.

Or. en

__________

1a COM(2022) 245.

Amendment 14

Proposal for a directive

Article 10 – paragraph 1 ca (new)

Text proposed by the Commission

Amendment

The proceeds shall be used for public interest or social purposes, with a particular focus on the victims wherever possible. Member States shall decide for which areas of public interest and social purposes the proceeds or the net revenuerevenues resulting from the liquidation of these confiscated funds or economicthe resourcesproceeds may be used except for thosethe latter when they are established as an own resource in accordance with Article 311(3) TFEU and thosewhen they are related to the Russian aggression against Ukraine, in which case they shall constitute external assigned revenue in accordance with Article 21(5) of the Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council1a (‘the Financial Regulation’) until the establishment of the relevant own resource in accordance with Article 311(3) TFEU and without prejudice to restitution, compensation, to the victims and public concerned and Member States’ capacity to implement the Directive. Those external assigned revenues shall be mainly assigned to the Neighbourhood, Development and International Cooperation Instrument – Global Europe on the Eastern Neighbourhood line (14 02 01 11) and, where appropriate, to the NDICI - Global Europe - provisioning of the common provisioning fund line (14 02 01 70) under Heading 6 and the successor budget lines in the next multiannual financial framework.

_________________

1a Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012 (OJ L 193, 30.7.2018, p. 1).

Or. en

Amendment 15

Proposal for a directive

Article 10 – paragraph 1 db (new)

Text proposed by the Commission

Amendment

The net revenues resulting from the liquidation of confiscated funds or economic resources related to the Russian aggression against Ukraine shall be mainly assigned to the Neighbourhood, Development and International Cooperation Instrument – Global Europe on the Eastern Neighbourhood line (14 02 01 11) and, where appropriate, to the NDICI - Global Europe - provisioning of the common provisioning fund line (14 02 01 70) under Heading 6 and the successor budget lines in the next multiannual financial framework.

Where the fines referred to in Article 5(5) and Article 7(2) and (3) are related to the offences referred to in Articles 3 and 4 and are linked to the violation of Union restrictive measures in the context of the Russian war of aggression against Ukraine, they should serve the goal of rebuilding the infrastructure and compensating the victim population.

Or. en

Amendment 16

Proposal for a directive

Article 1013 – paragraph 12 ea (new)

Text proposed by the Commission

Amendment

Tracing, freezing and communicating about the amount of frozen assets in the Union as a result of its restrictive measures shall apply to all sanctions regimes the Union currently has.

For the purposes of this Directive, when the notion of competent authorities refers to investigating and prosecuting authorities, it shall be interpreted as including the central and decentralised levels of the EPPO with regard to the Member States that participate in the enhanced cooperation on the establishment of the EPPO. Asset recovery offices shall therefore incur the obligations under the EPPO Regulation, including the obligation to report to the EPPO under Article 24 of the EPPO Regulation, undertaking of measures if instructed as a competent authority under Article 28(1) of the EPPO Regulation and access to information under Article 43(1) of the EPPO Regulation.

Or. en

Amendment 17

Proposal for a directive

Article 1315 – paragraph 2 a (new)1

Text proposed by the Commission

Amendment

For the purposes of this Directive, when the notion of competent authorities refers to investigating and prosecuting authorities, it shall be interpreted as including the central and decentralised levels of the EPPO with regard to the Member States that participate in the enhanced cooperation on the establishment of the EPPO. Asset recovery offices shall therefore incur the obligations under the EPPO Regulation, including the obligation to report to the EPPO under Article 24 of the EPPO Regulation, undertaking of measures if instructed as a competent authority under Article 28(1) of the EPPO Regulation and access to information under Article 43(1) of the EPPO Regulation.

Member States shall take the necessary measures to ensure that effective investigative tools, such as those which are used in investigating organised crime or other serious crime cases, are also available for investigating or prosecuting offences referred to in Articles 3 and 4.

Or. en

Member States shall take the necessary measures to ensure that effective investigative tools and mechanisms, such as those which are used in investigating organised crime or other serious crime cases, are also available for investigating or prosecuting offences referred to in Articles 3 and 4.

Amendment 18

Amendment

Offences referred to in Articles 3 and 4 which involve designated persons, their dependants, entity or body, listed in the legal acts of the Union on restrictive measures, such as Council Regulation (EU) No 269/2014 and Council Regulation (EU) No 833/2014,833/2014 and fall within the mandate of the EPPO, shall be referred to the EPPO for investigating, prosecuting and bringing to judgment.

Or. en

Justification

(1) Without prejudice to the rules on cross-border cooperation and mutual legal assistance in criminal matters, Member States’ authorities, Europol, Eurojust, the European Public Prosecutor's Office, and the Commission shall, within their respective competences, cooperate with each other in the fight against the criminal offences referred to in Articles 3 and 4. To that end, the Commission, and where appropriate, Europol and Eurojust, shall provide technical and operational assistance in order to facilitate the coordination of investigations and prosecutions by the competent authorities.

(1) Without prejudice to the rules on cross-border cooperation and mutual legal assistance in criminal matters, Member States’ authorities, Europol, Eurojust, the European Public Prosecutor's Office, Specialwhen EnvoyMember forStates participating in the Implementationenhanced cooperation on the establishment of EUthe SanctionsEPPO are involved and the Commission shall, within their respective competences, cooperate with each other in the fight against the criminal offences referred to in Articles 3 and 4. To that end, the Commission, and where appropriate, EPPO, Europol and Eurojust,Eurojust and EPPO in regards to Member States participating in the enhanced cooperation on the establishment of the EPPO are involved, shall provide technical and operational assistance in order to facilitate the coordination of investigations and prosecutions by the competent authorities.

Or. en

Amendment 20

Amendment

(1a) Commission, Europol, Eurojust, Special Envoy for the Implementation of EU Sanctions,Eurojust as well as authorities of the Member States, in particular Asset Recovery Offices and Asset Management Offices, in accordance with Directive (EU) […/…] [Directive on asset recovery and confiscation], shall cooperate with the EPPO on offences referred to in Articles 3 and 4 which involve designated person, entity or body, listed in Council Regulation (EU) No 269/2014 and which are referred to the EPPO for investigating, prosecuting and bringing to judgment.

Or. en

Amendment 21

(2) Member States’ competent authorities shall also regularly share information on practical issues, in particular, patterns of circumvention, e.g. structures to conceal the beneficial ownership and control of assets, with the Commission and other competent authorities.

(2) Member States’ competent authorities shall also regularly share information on practical issues, in particular, patterns of circumvention, e.g. structures to conceal the beneficial ownership and control of assets, with the Commission, EPPO and other competent authorities.authorities, within the exercise of their respective competences.

Or. en

Amendment 22

Amendment

(aa) the number of criminal proceedings referred to the EPPO in line with Article 15, paragraph 1a.EPPO.

Or. en

Amendment 23

(ba) the monetary value of funds and economic resources frozen and confiscated in each case of violation of Union restrictive measures;

Or. en

Amendment 24

(bb) the types of national authorities involved in investigations and criminal proceedings.

Or. en

Justification

The scope is to identify which of the national authorities are most solicited and as a consequence might require additional financial and technical resources.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

Definition of criminal offences and penalties for the violation of Union restrictive measures

References

COM(2022)0684 – C9-0401/2022 – 2022/0398(COD)

Committee responsible

Date announced in plenary

LIBE

12.12.2022

Opinion by

Date announced in plenary

BUDG

16.3.2023

Rapporteur for the opinion

Date appointed

Vlad Gheorghe

28.3.2023

Discussed in committee

26.4.2023

Date adopted

8.6.2023

Result of final vote

+:

–:

0:

21

1

2

Members present for the final vote

Olivier Chastel, Andor Deli, Pascal Durand, José Manuel Fernandes, Vlad Gheorghe, Valérie Hayer, Eero Heinäluoma, Niclas Herbst, Adam Jarubas, Moritz Körner, Zbigniew Kuźmiuk, Camilla Laureti, Siegfried Mureşan, Dimitrios Papadimoulis, Bogdan Rzońca, Eleni Stavrou, Nils Ušakovs

Substitutes present for the final vote

Jonás Fernández, Jens Geier, Fabienne Keller, Petri Sarvamaa

Substitutes under Rule 209(7) present for the final vote

Asim Ademov, Markus Ferber, Massimiliano Smeriglio

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

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